Coty has finally closed one of the key chapters of its profound strategic transformation. The US group has sold KKR the 25.8% it still held in Wella Company, a deal valued at $750 million (approximately 639 million euros) that marks its complete exit from the professional hair business.
This sale is not an isolated move, but the culmination of a restructuring process initiated in 2020, when Coty decided to divest a significant portion of its portfolio to focus on its core businesses: fragrances, cosmetics, and consumer skincare. At that time, KKR's entry into Wella allowed Coty to reduce financial pressure and gain breathing room amid internal reorganization.
Although Coty is divesting its shareholding in Wella, the agreement includes an important strategic nuance: the company **will retain economic rights over 45% of future profits** generated in the event that KKR sells Wella or takes it public, once the fund's preferred return has been recovered. A long-term nod that leaves the door open to additional returns
The immediate objective of the operation is clear and very financial: reduce debt and strengthen the balance sheet. Coty will allocate most of the proceeds to paying down liabilities, both short-term and long-term, with the goal of bringing its net leverage to around three times by the end of 2025. A level that would provide greater room for maneuver to invest, innovate, and compete in an increasingly demanding beauty market.
From the company, the message is one of closing a cycle. For its chief financial officer, Laurent Mercier, the transaction “puts the finishing touch on a planned divestment” and confirms the value generated during the alliance with KKR. In parallel, Coty reinforces its narrative of being a **lighter, more focused company, prepared for growth, after years of adjustments, brand simplification, and operational optimization.